Roubinis Economic Forecast: Trump Win Could Reverse Hopes

Nouriel Roubini, known for predicting the 2008 financial crisis, has tempered worries about the economy and financial markets. However, he warns a Trump victory could reverse this progress.

Roubini's tempered optimism

In a recent interview with CNBC, Roubini stated that the US economy is performing better than expected and corporate profits are rising, which are positive signs for the economy and capital markets.

Roubini attributes this improvement to factors such as the Federal Reserve raising interest rates, reducing its balance sheet, and the Trump administration's tax cuts. These measures have stimulated economic growth and boosted corporate earnings.

However, Roubini adds that the global economy is slowing down, which could impact the US economy in the future. He also notes that the US-China trade war is a potential risk to the global economy.

Trump's potential impact

Roubini warns that a Trump victory in the 2020 presidential election could reverse the economic progress seen under the current administration. He believes Trump's trade policies, such as tariffs, could hurt the US economy and global trade.

Roubini also criticizes Trump's fiscal policies, particularly the tax cuts, which he believes have increased the budget deficit and national debt. He argues that these policies are unsustainable and could lead to economic problems in the future.

Roubini concludes by stating that the US economy is not as strong as it appears and that a Trump victory could lead to economic instability and market volatility.